Strategic Analysis of Baskin Robbins Canada
Of all the ingredients used to make ice cream products, palm oil is the most essential as it gives them their smooth, creamy texture. According to the World Wildlife Fund, Malaysia and Indonesia produce the highest number of palm trees at 85 percent. However, due to climate change, the number of palm trees has reduced. The quantity of palm oil produced has also reduced, resulting in increased product prices. In the process, sales have reduced because of high ice cream production costs. However, the Mars Initiative, whose aim is to eliminate the use of fossil fuel in farming and other sectors, notes that green energy will reduce the effects of global warming and increase crop production (Wee). For instance, the use of wind turbines and solar panels to produce electricity will be cheaper than fossil fuel, thus reducing production costs for Baskin Robbins Canada.
Interestingly, the US economic crisis may have helped Baskin Robbins Canada to boost its sales. In times of financial crisis, most businesses are likely to suffer. Individuals do not go out to eat as much as they did before the crisis. Others cut back on essential items (KaleidoScoops). On the contrary, Baskin Robbins Canada and other ice cream enterprises are unlikely to be affected by such a financial crisis. The reason for this is that ice cream is comfort food that most people may take during bad days to feel better. Ice scream is also affordable as much as it provides pleasure (Schwartz). However, the financial dip led to new entrants that increased the level of competition in the market. As a result, Baskin Robbins Canada’s market share dropped.
World Wildlife Fund. “Ice Cream’s Impact on the Environment.” World Wildlife Fund, 2016. www.worldwildlife.org/magazine/issues/summer-2016/articles/ice-cream-s-impact-on-the-environment. Accessed 28 Sept. 2019.
KaleidoScoops. “Why is a Bad Economy Good for Ice Cream Businesses?” UCI Digital, 2016. www.kalscoops.com/why-is-a-bad-economy-good-for-ice-cream-businesses/. Accessed 28 Sept. 2019.
Schwartz, Elaine. “Ice Cream Economics.” Econlife, 2019. econlife.com/2019/05/six-facts-about-ice-cream-economics/. Accessed 28 Sept. 2019.
Wee, Heesun. “How Ice Cream, Chocolate Just Might Save The Planet.” CNBC, 2015. com/2015/12/10/how-ice-cream-chocolate-just-might-save-the-planet.html”>https://www.cnbc.com/2015/12/10/how-ice-cream-chocolate-just-might-save-the-planet.html. Accessed 28 Sept. 2019.
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